Known as the most innovative industry for much of the commercial world from the 1950′s, consumer goods have got caught napping.
Retailers are cutting their lunch through some classic backwards vertical integration – that is, making the products their suppliers make.
So my question is this, why aren’t the global fast moving consumer goods companies taking on the retailers at their own game? What they should do is simple. Develop a consortium of supermarket suppliers and buy a supermarket chain. The missing link in their marketing mix – distribution control. They need to get back some control at the retail level or the long term picture is one of reduced shelf space, and more retailer erosion of their business. Consumer goods companies need to compete with their retailers in the same way the retailers compete with them.
Brands will start shipping product components and raw materials to stores for to be assembled on site… as part of the retail experience.
The customers will become the theatre at transaction.
The desire to create and customize will conspire to create highly interactive and profitable retail concoction. What we’ve already seen in digital…’A mash up of co-creation and mass customization’… we will inevitably see in retail…. The retailers that survive anyway.
Junk mail is not named correctly. It should be called Research Mail, Zeitgeist Mail or something much more complementary.
Here’s a list of great things it does:
- It tells us what people think they can sell
- It tells us the price of things, probably our competitors
- It tells us who can afford to advertise
- It tells us the economic conditions of the day via the discounts made
- It display the advances in technology
- It tells us what’s hot
- It keeps us in touch with the business environment more than the Wall Street Journal does
It’s an entrepreneurs best friend. Startup blog says read your junk mail.